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OANDA Discussion

Quoting cuchuflito
{quote} Hi The Secrets How did you calculate that number? I used this tool provided by OANDA: https://www.oanda.com/embed/show/interest_calc/1/? Trading daily forex pairs, and keeping my winners for about 2 months, it eats a bit less than 10% of the profits, which is ugly. Add taxes...not easy to make any $, with those costs.
I took the rates from https://www.oanda.com/rw-en/trading/financing-costs/

That calculator seems to be displaying a different rate.
It seems the calculator gives:
-0.08% for long position
-3.42% for short position
which translates into -1.67%/+1.67% price adjustment for long/short and -1.75% "admin fee"

Now I checked today's rates at https://www.oanda.com/rw-en/trading/financing-costs/ and found:
-8.46% for long position
-6.54% for short position
which translates into -0.96%/+0.96% price adjustment and -7.5% "admin fee" (what?!!!)
Compare -8.46%/-6.54% to yesterday's -2.83%/-2.17%
Either there is a mistake/bug in their system, or they truly became yet another scammer.
Oh wait, I just realised the triple rate is due to weekend.
That explains the admin fee of -7.5% instead of -2.5% and price adjustment of -/+0.96% instead of -/+0.33% (3 month USD LIBOR).

Apparently, for indices this is done on Friday:
Quote
Indices typically factor in weekend financing on a Friday (tripling the usual daily rate), although this timeline is also similarly impacted by public holidays.

I take my words about mistake/bug/scam back. The only scam here is, of course, the exorbitant 2.5% "admin fee".
Here's why Oanda "admin fee" does not make sense: it is -2.5% for all instruments regardless of their volatility.

Let's compare two instruments and their volatility (before it blew up because of corona crisis, taking data approx. until Jan 2020): WTI Crude Oil and US 10 year T-note.

For both, annual fee is 2.5%, but:
WTI Crude oil annualised volatility was about 31%
US 10 year T-note annualised volatility was about 4.5%

It means that there is enough price movement in crude oil to overcome this massive trading cost. But making money in T-note is close to impossible.
Take note that spreads are irrelevant in comparison. They can be 0 and you'd still be fleeced trading T-notes or other low volatility markets.
Found a WTI long I made on an Oanda Demo acc back 7th April WTI at $24 ish for 68 units
Position profit now showing as £540
Financing cost (just for that position) £459.38

Overnight it went from 60p/day to hold the position to £8/day - My live position was bigger hence having to bail.

Time to find a new broker.
Quoting Wightoil
Found a WTI long I made on an Oanda Demo acc back 7th April WTI at $24 ish for 68 units Position profit now showing as £540 Financing cost (just for that position) £459.38 Overnight it went from 60p/day to hold the position to £8/day - My live position was bigger hence having to bail. Time to find a new broker.
That is really odd. I took a look at Crude Oil continuous futures contract and found the price move from 2020-04-07 open to 2020-06-05 close was about 7.77 points. At 68 units you should have been up about $528 minus about 3 spreads (entry, exit and two roll-overs) and minus about $6.80 for admin fee (annual 2.5% for 2 months times 68 times ~$24).
Check the WTI financing cost on the page you linked above, -265%
Quoting Wightoil
Check the WTI financing cost on the page you linked above, -265%
Yes, I'm fully aware of that rate. The odd thing I find is not the rate, but your result being so out of whack with the underlying futures.

At the moment of writing the rates are:
-264.8% for long
259.8% for short
at about $34.55

This amounts to -2.5% admin fee and 262.3% annual downward price adjustment, or 0.719% per day, or at $34.55 the downward adjustment of $0.248 per unit. If you adjust your price series by these daily adjustments, you'd get the real price series on which you should make your trading decisions (or base your decisions on continuous futures). If you're not taking this into account when trading, then your trading will be completely off. But the admin fee is -2.5% regardless if you're long or short, it cannot be accounted for, it is always a loss.

July 2020 (CLN20) is at 39.55 (current contract expiring in 15 days on 06/22)
August 2020 (CLQ20) is at 39.80 (next contract)

The current difference between Oanda CFD and August 2020 (CLQ20) contract is 39.80 - 34.55 = 5.25. Divided by 15 days, you'd get $0.35 adjustment per day (pretty close to the actual $0.25). In case of the current situation you'd expect the CFD price to drift upwards by $0.25 per day, while $0.25 being subtracted from longs and added to shorts, ending everything at net 0 and converging towards the actual CLQ20 futures price.

My point is, just because the rate number is large, it doesn't mean anything by itself. If you understand the relation between CFDs and the underlying futures, you will see that the actual unavoidable cost is just the "admin fee" (and the spread, of course, but that one can be somewhat controlled and mitigated by trading around). Just saying "oh look, it is 200%, time to find another broker!" is simply wrong.
I have been trading with Oanda for several years now. Where do I find the US Wall Street 30 on my platform? Other commodities? Would these be on MT4 ?

I live in the U.S.

Thanks
Quoting snowlion
I have been trading with Oanda for several years now. Where do I find the US Wall Street 30 on my platform? Other commodities? Would these be on MT4 ? I live in the U.S. Thanks
In the U.S. they offer only forex, no index or commodity products. They arent allowed to as per regulation.
Quoting TheSecrets
{quote} Yes, I'm fully aware of that rate. The odd thing I find is not the rate, but your result being so out of whack with the underlying futures. At the moment of writing the rates are: -264.8% for long 259.8% for short at about $34.55 This amounts to -2.5% admin fee and 262.3% annual downward price adjustment, or 0.719% per day, or at $34.55 the downward adjustment of $0.248 per unit. If you adjust your price series by these daily adjustments, you'd get the real price series on which you should make your trading decisions (or base your decisions...
Thanks for the input , I understand to an extent how it works but on 14/4 the rate went from 15% to 268% (forcing me out of my live position) and has not changed since, whereas I see the gap between the CFD price and the next 2 contract prices has narrowed considerably. This lack of change is what I do not understand. They bill $25/day for holding 100 units long WTI - hence the holding cost I gave from my demo account.
Im a customer of this brocker since 2014, basically trading crude oil. My opinion.
+ money withdraw no problem
+ Constant CFd contract, without closing position for expiration

- the amount of money you need to open position is too high

- the other thing is margin call. Roughly, if your position goes against price your gonna have only 1-1.5 $ before margin call.

- constantly changing interest rate. In order to rip off your account. Recent situation, 2 months ago the oil price around 15-20 bucks. The interest for long if you hold100 units it means 200 $ deposit is. MINUS 25 dollars per day. Your account will be fucked with 1 or 2 days. But do you know what they did 10 days ago? I was dreaming about PLUS 25 bucks interest per day for short. Fuck off they say, now they reduce the interest, so its only 5 bucks per day for 100 units,, and you need 400 bucks roughly. What happened? Did Federal reserve change the interest rate or your just realized that no more bullish for oil in this year?

- constantly changing quotes, the difference between CME and Oanda was like 5 or 7 $ one month ago. Now it almost the same. 10 days ago they lift quotes to make it close to CME, but you cant predict that they wiil do it, and its affect your trading as well. Its missliding yourself, the difference between charts.
I don't know about currency but do not trade oil with this broker.
Its total bullshit.
Quoting mihrutkanik
Im a customer of this brocker since 2014, basically trading crude oil. My opinion. + money withdraw no problem + Constant CFd contract, without closing position for expiration - the amount of money you need to open position is too high - the other thing is margin call. Roughly, if your position goes against price your gonna have only 1-1.5 $ before margin call. - constantly changing interest rate. In order to rip off your account. Recent situation, 2 months ago the oil price around 15-20 bucks. The interest for long if you hold100 units it means...
I trade WTI with OANDA and I have no problem at all because I have a decent account. If you worry about margin calls it's obvious that your account is underfunded. The amount that is required to open a WTI trade is low no matter what your leverage is. On a margin of 1:100 all you need is $38.91 per 100 Bbl (see picture). On a margin of 1:30 it's $129.70. If these amounts are too high again the problem is that your account is underfunded. I agree 100% with you that the funding cost for oil is totally unacceptable (see picture of 17 April swaps) as compared to other commodities. These swap rates have gone down since but they are still too high. Best is never to keep a trade open overnight. With a good trading strategy it's next to impossible losing money trading WTI on a daily basis. Happy trading
Attached Image(s) (click to enlarge)
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Please is anyone able to access the oanda heat map page for currency pairs...they removed it from their web page since their new site upgrade.
i could previously access it with this link: oanda.com/forex-trading/analysis/currency-heatmap but its currently not working.
Anyone has same issues or found a way around it. Thank you
Nothing stands in the way of a person's will -THE MYSTICS
I noticed something strange with Oanda Swap Rates AKA Financing Fees. First, it changed quickly. Second, the rate is kind of 'big' and uncompetitive. For example EUR/GBP for short position : 30 June 2020 : -0,2x % , 1 July 2020 : -0,5%, and 2 July 2020 : -1.43%. I checked online and other premium brokers still have below 1% rate.

Only a few days and the rate spiked. I know according to the trading agreement we can't complaint about the financing fee. It's up to them as a Market Maker. In my opinion Oanda Forces us to trade Intraday.

The rate for Forex is still moderate but above the average. For commodities, it's insane. The rate for Natural Gas is 70%. I just realized it after a few days and decided to close my profitable position since it wasn't worth. 5.8% per month? that would be crazy. Playing Intraday isn't easy. My style is kind of Swing Trading and this bothers me a lot.

But I love the platform (web based Trading view) and the way Trading in Units. Well, I decided to still trade with Oanda and focus on Currencies only. Say goodbye to commodity trading.

Maybe I'll try other brokers too. Still considering other brokers. But it's very difficult to move from Oanda since their unit Trading maybe the only one available. It helps me alot especially when I trade commodities to reduce the trade size.

But I think this Swap Problems could cause a lot of trouble for Oanda. Maybe this isn't a problem for Intraday Trader but this is a big problem for me since it reduces my chances of winning a lot.
For OANDA REST API users here, I noticed that if you query 4 hours candle at 5:01pm EST using REST API you get 1:00pm 4 hours candle. However, if you query 4 hours candle at 5:02pm you get 5pm 4 hours candle.

My Algo do calculations based on open, close, high and low on 4 hours candle and because of this Algo took wrong trades.

Additionally, you will have to pass parameter 'smooth' as true to get last candle close as open for next candle. I came to know from their customer service after few losses.
anyone using Oanda AU? how about your spreads? can you share a screenshot?
Forex, my love!
Quoting AlgoTrader4
For OANDA REST API users here, I noticed that if you query 4 hours candle at 5:01pm EST using REST API you get 1:00pm 4 hours candle. However, if you query 4 hours candle at 5:02pm you get 5pm 4 hours candle. .
I dont get how are you getting candles but everything works as it should for me.
@xy100,

I use their end point: v3/instruments/EUR_USD/candles?count=6&price=BAM&granularity=H4

If you use above end point at 5:01pm EST, you will get 1:00pm EST candle instead of 5:00pm EST.
Oanada swap rates are garbage so is the spread...they pushed me off profitable oil positions with their 340% interest rates...but its the only broker I can deposit larger sum of money in Canada without worry...fucking lose/lose for retail traders no matter what you do...
Quoting Hutch
Soon we will get new lower spreads from OANDA. {image}
No man Actually oanda has increased the spreads. .

I have seen sudden drop of the bid to increase the spreads. Unbelievable
Normally its the ask going up to increase the spreads. Are they hunting stops?

There is no point to use oanda any more
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